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Classification
CONFIDENTIAL
OUT TELEGRAM (CONT)
Caveat.
Precedence
DESKBY
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The
present situation in-Hong-Kong. The Governor's proposats
continue to attract steady support from the community (by a
margin of about 2:1 according to a series of opinion polls). business community are understandably anxious to see the current
difficulties resolved soon. But the economic fundamentals in
Hong Kong remain sound. As you know, the Chinese have reacted
harshly to the Governor's proposals and the fact that he
announced them before engaging in detailed discussion with the
Chinese. Their statement casting doubt on the validity of
government contracts and franchises stretching beyond 1997 is
inconsistent with the Joint Declaration and the Basic Law.
demand that the Governor should withdraw his proposals as a pre-
condition for any discussion is wholly unrealistic. The Governor
has of course emphasised that his proposals are just that: proposals for discussion, and the Governor would be happy to discuss any alternative proposals China may have for the elections in 1995 which would be open, fair and acceptable to the people of Hong Kong.
Their
The 25th meeting of the Sino-British Joint Liaison Group took place recently in Hong Kong. The Chinese side unfortunately refused either to discuss our proposals for the 1995 elections,
or to transact any other business on the JLG agenda.
The Chinese side have been seeking to intimidate Hong Kong and foreign firms, by suggesting that those who support the Governor's proposals may expect to suffer commercially after 1997. This is dangerous and irresponsible behaviour, and does
not sit comfortably with China's commitment under the Joint Declaration to preserve Hong Kong's stability and prosperity.
It is clearly important that China and Britain should return to
calm discussion as quickly as possible.
We for our part are ready for this at any time. It would be very helpful
For ctnouncer see Page
Pointed in the UK for HMSO 1.91 Dd FCC3275 M100 CON 56294
Catchword:
STOCK No. C037C
YFB7